Is ASM... - Page 2

Santo · #11 (**permalink**) 03-23-2007, 04:30 AM

I've met with the operators of Tradesports several times. Their main office is actually out of Dublin, Ireland, they're more in the mould of Betfair than ASM/ProTrade, and doubt they have any interest in going public, other than possibly as a Gambling company on the UK Index.

DewJunkie · #12 (**permalink**) 03-24-2007, 04:02 PM

I think the ASM trading is more like real stock trading. In real stocks a companies performance determines whether people want to buy or sell their stock. People buying and selling the stock (demand) controls the price. But i gotta admit the management side of ASM is no good lol. Someone should buy ASM from chris and set it up themselves....with good management ASM would be rockin and ready to go.

JDub · #13 (**permalink**) 03-25-2007, 02:30 PM

Quote:

Originally Posted by VinceYoung

JDub,

For Protrade to start using real money doesn't imply it has to "abandon" its business model. That's the whole point I think...If ASM can define performance-based derivatives as a legal commodity and not gambling, then Protrade can surely claim that its "stocks" are performance based derivatives as well, while still maintaining a vastly different market model than ASM.

Also, there's no reason they would have to abandon their current Fantasy model as well, they could simply have a fantasy option and a for-money option.

I haven't traded at protrade in a long while so I may be wrong here but:
It is my understanding the if Peyton Manning has x, y and z statistics that it equals $x as a market price. So in this aspect it is far more accurate to say that their "stocks" are performanced based than at ASM, but I am not sure how that can be traded as you still need a seller and buyer at that price. So the market isn't setting the price the performance is --- not sure how that could work?
They do already have a strong base and history to easily add a "for money" exchange to their platform and already have the connections to U.S. based professional leagues for quick partnerships.

Santo · #14 (**permalink**) 03-25-2007, 02:32 PM

As you say the PT model is much more suited to fantasy. The only way you could do it with their current system is like a fantasy league, let people spend $500 at the start (that they deposit), then whoever's portfolio is worth most wins 70%, 2nd wins 25%, house takes 5% (as an example).

firefly · #15 (**permalink**) 03-25-2007, 05:12 PM

I don't think it would be that difficult.
Just one option: take the performance measures to come up with a base price (like they already do apparently) and then add another measure for the demand. This would be based on statistics, trades, open orders.. for example, high values here would mean that the base price would rise by a certain percentage and low values mean it would go down by a certain percentage. Of course, more thought would have to be given to this to eliminate potential loopholes and flaws but these basic principles could easily be applied to create a real-money market, IMO.